Coinbase has received support from the United States Chamber of Commerce in its legal dispute with the Securities and Exchange Commission (SEC) regarding its intended lending service.
In an amicus brief, the Chamber criticized the SEC for its ambiguous and inconsistent method of regulating digital assets. The Chamber, being the largest business organization in the world, emphasized that there is no clear definition of which digital assets are considered securities under federal law.
The SEC Scrutiny
A campaign initiated by the SEC mandates registration from the digital assets industry, leaving several firms perplexed about adhering to the SEC’s interpretation of the law or challenging it in court. Consequently, an increasing number of companies are supporting Coinbase’s appeal to urge the SEC to clarify the regulations governing crypto’s position in securities regulation, submitted in 2022.
The US Chamber of Commerce has given its support to Coinbase in a recent submission made on Tuesday, May 9th. Through this submission, the Chamber has expressed its concern about the Securities and Exchange Commission (SEC) and its failure to provide clear regulatory guidance to Coinbase.
According to the Chamber, this negligence is causing significant economic damage not just to Coinbase but also to the wider business community. The US Chamber of Commerce is known to advocate for the interests of more than 3 million businesses and organizations across the country, from small local enterprises to large multinational corporations.
Coinbase Well’s Notice
Coinbase, a company that emphasizes its adherence to regulatory compliance and transparency, earlier received a Wells Notice from the SEC in March, cautioning it of possible enforcement action against the exchange.
The SEC contended that Coinbase’s stacking products were unregistered securities and also referenced other elements of its business, such as its Coinbase Wallet. The legal dispute between Coinbase and the SEC may intensify due to this upcoming enforcement action.